Washington, D.C. (Reuters) – On Tuesday, the U.S. Federal Communications Commission said again that it would not give SpaceX’s satellite internet unit Starlink $885.5 million in rural broadband funds in 2022.
The FCC said that the decision that affected Elon Musk’s space company was made because Starlink did not meet basic program standards and could not show that it could provide the service it had promised after SpaceX had challenged the 2022 decision.
“The FCC carefully looked at the law, technology, and policy to decide that this applicant had not met its burden,” said Jessica Rosenworcel, chair of the FCC.
The FCC said that SpaceX’s failure to safely launch its Starship rocket was one of the reasons. They said that “the uncertain nature of Starship’s future launches could impact Starlink’s ability to meet” its obligations.
The FCC renewed the funding in August 2022 based on speed test results. This was after Starlink decided to connect 642,000 homes and businesses in 35 states to high-speed Internet.
SpaceX said it was “deeply disappointed and perplexed” by the FCC’s decision. They also said Starlink “is demonstrably one of the best options—likely the best option” to help the rural internet program reach its goals.
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Two of the five commissioners on the FCC who are Republicans didn’t agree with the decision. They said that the FCC was holding SpaceX to goals from 2025 three years early, which was not fair. They also said that the Biden administration’s anger toward Musk was to blame.
“The growing list of administrative agencies that are taking action against Elon Musk’s businesses” was added by FCC Commissioner Brendan Carr. He also said that the decision “certainly fits the Biden Administration’s pattern of regulatory harassment.”
Musk wrote on X that the FCC’s ruling “doesn’t make sense.” Starlink is the only company that can really set up large-scale internet in rural areas. It’s possible that they should end the program and give the money back to the public, but they shouldn’t give it to people who aren’t doing their job.
Nathan Simington, a Republican FCC commissioner, said that Starlink had about two million subscribers in September 2023. He also said, “SpaceX keeps putting more satellites into orbit every month, which should mean even faster and more reliable service.”
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